3 Potential Opportunities for the Value Investor


Value investors may want to consider these three stocks for the following reasons:

  • These stocks seem cheap, as their earnings are trading for a price-earning ratio of 20 or less.
  • They boast a consistent history of earnings and sales generation. The top and bottom lines have grown over the past five years and no net losses were reported.
  • They have received positive recommendation ratings from sell-side analysts on Wall Street.

    • National Retail Properties Inc
    The first stock to have a look at is National Retail Properties Inc (NYSE:NNN).
    The Orlando, Florida-based real estate investment trust saw its trailing 12-month revenue per share grow by 3.3% and its trailing 12-month earnings per share without non-recurring items increase by 8.1% on average every year over the past five years. The price-earnings ratio (18.88 as of Friday) has declined by 0.3% over the observed years.
    The stock traded at a price of $29.45 per share at close on Friday for a market cap of $5.06 billion and a dividend yield of nearly 7%.
    GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a high profitability rating of 8 out of 10.
    As of April, the stock has six strong buy ratings, 2 buy ratings and seven hold ratings on Wall Street. Sell-side analysts have issued an average target price of $44.75 per share.
    Alamo Group Inc
    The second stock to have a look at is Alamo Group Inc (NYSE:ALG).
    The Seguin, Texas-based manufacturer and provider of farm and heavy construction machineries saw its trailing 12-month revenue per share grow by 5.7% and its trailing 12-month EPS without NRI grow by nearly 12% on average every year over the past five years. The price-earnings ratio (17.07 as of Friday ) increased slightly by only 0.7% over the period in question.
    The stock traded at a price of $90.99 per share at close on Friday for a market cap of $1.08 billion and a dividend yield of 0.55%.
    GuruFocus assigned a moderate score of 5 out of 10 to the company's financial strength but a high score of 8 out of 10 to its profitability.
    As of April, Wall Street analysts recommended an average target price is $127.25 per share.
    John Wiley & Sons Inc Class A
    The third stock to have a look at is John Wiley & Sons Inc Class A (NYSE:JW.A).
    The Hoboken, New Jersey-based global provider of research and learning services saw its trailing 12-month revenue per share increase at a 0.8% rate over the past five years, while EPS without NRI grew by 1.4% per year. The price-earnings ratio (13.42 as of Friday) declined by 0.2% over the observed years.
    The stock traded at a price of $34.62 per share at close on Friday for a market cap of $1.94 billion and a dividend yield of 3.93%.
    GuruFocus assigned the company a moderate rating of 5 out of 10 for its financial strength and a very good rating of 7 out of 10 for its profitability.
    As of April, the stock has two buy ratings and one hold rating on Wall Street. The average target price is $43.50 per share.